Kettera Strategies' November 2019 Heat Map Report
In the world of hedge funds, November proved to be a month of mixed results, with some strategies thriving while others faced setbacks.
The Eurekahedge Long Short Equities Hedge Fund Index, a widely recognised index, showcases the performance of long-short equity hedge funds globally. This index, along with others such as the Eurekahedge AI Hedge Fund Index, the CBOE Eurekahedge Relative Value Volatility Hedge Fund Index, and the Eurekahedge Market Neutral Hedge Fund Index, were among those tracked during the month.
Quant, or model-driven, macro programs, however, experienced setbacks in November, particularly in G10 currencies and the US yield curve. Conversely, equity strategies benefited from buoyant performance, despite substantial political headwinds.
November was a comeback month for most larger traditional systematic trend strategies. The leading winning sectors were equity indices and currencies. The BarclayHedge Equity Market Neutral Index, for instance, saw positive performance during this period.
Market neutral strategies, on the other hand, had varying results. There was substantial rotation within the market, indicating a shift in positions and tactics among these funds.
Short-term and higher-frequency programs also had one of their best performing months in November. Equity index markets offered the most opportunity, contributing to their success.
Options- and volatility-based programs also had a strong month. Many energy specialists posted profitable months, particularly those with a relative value or spread approach.
Global Macro managers ended November mostly flat to positive, with gains primarily from equities-related positions.
It's important to note that the indices and financial benchmarks mentioned in this article are for illustrative purposes only. For more detailed performance trends and analysis, it is recommended to refer to official sources such as Kettera Strategies' monthly or quarterly letters, fund fact sheets, or financial news platforms specialising in hedge fund performance reporting.
The various style classes presented are classifications drawn by Kettera Strategies for analysis and comparison purposes, not investment products or index products. Similarly, the BarclayHedge Currency Traders Index and BTOP FX Traders Index, as well as the S&P GSCI Metals & Energy Index and S&P GSCI Ag Commodities Index, are financial benchmarks used for comparison and understanding the overall market trends.
In conclusion, November presented a diverse range of outcomes across various hedge fund strategies. While some strategies struggled, others saw significant gains. As always, it's crucial to keep a close eye on market trends and adapt strategies accordingly.
Technology-focused investments saw growth in November, with many e-commerce and technology firms experiencing positive performance due to the buoyant equity markets.
Investors interested in more sophisticated investing strategies, such as quantitative programs, may consider exploring AI-driven funds, as the Eurekahedge AI Hedge Fund Index showed promising results during the month.
